2010 AnnuAl Review MESSAGE TO SHAREHOLDERS “ For 2011, we’re forecasting a double-digit percentage increase in both revenue and earnings through a company-wide focus on profitable organic growth and delivering strong performance from acquisitions.” GREG SwiEnTOn Chairman and Chief Executive Officer Through what proved to be an uneven, slow recovery in 2010, we delivered earnings per diluted share that were up more than 100%. On an operating revenue increase of 2% we achieved strong earnings leverage. Comparable earnings per diluted share from continuing operations of $2.22, were up 31% from 2009, and were 18% higher than our initial 2010 forecast. We also increased our 2010 return on capital to 4.8% from 4.1% in the prior year. Our steady progress throughout the year, culminating in a particularly strong fourth quarter, helped us deliver total shareholder returns that were more than double the returns of the S&P 500 index. We clearly gained momentum with substantially improved performance in 2010. Although we haven’t experienced a return to growth in every product line, we main- tained or increased our market share in all major market segments. For 2011, we expect the continuation of many of the same positive trends we saw in 2010. Even in a continuing gradual recovery with the lingering effects of a deep freight recession still in place, we plan to accelerate revenue growth and deliver very solid returns. We’re forecasting a double-digit percentage increase in both revenue and earnings through a company-wide focus on profitable organic growth and delivering strong performance from acquisitions. We’re also investing in new equipment and technologies to further enhance the value and competitiveness of our solutions and continuously bring reliable innovation to our customers. With another year of strong progress behind us, and a year of expected gradual economic recovery ahead, we have much to look forward to in 2011 and long term. Thank you for your ongoing interest in and commitment to Ryder. Sincerely, GREG SwiEnTOn Chairman and Chief Executive Officer 1 2010 AnnuAl Review 2010 YEAR HiGHLiGHTS Increased earnings per diluted share more than 100% Improved earnings per diluted share from continuing operations by 31%, on operating revenue increase of 2% Increased return on capital to 4.8% from 4.1% in the prior year Delivered total shareholder returns that were more than double the returns of the S&P 500 index Announced three acquisitions adding more than $350 million in annualized revenue and more than 265 new contractual customers across all three reporting segments 2 2010 AnnuAl Review TREnDS DRiVinG DEMAnD “ Commercial fleets, transportation networks and supply chains are becoming increasingly difficult for businesses to manage in-house. Managers face growing complexity in all areas of technology, increasing regulatory require- ments, exposure to cost volatility and intense competi- tive pressure. By outsourcing these specialized func- tions to Ryder, companies can reduce risk and focus more time, resources, and capital on strengthening their core business.” ROBERT SAnCHEZ President, Ryder Global Fleet Management Solutions LOnG-TERM DYnAMiCS AnD MARkET TREnDS DRiVinG OuTSOuRCinG Ryder is a leader in each of its primary transportation and supply chain solu- tions offerings. While Ryder is already a leading provider in each of these categories, significant marketplace trends and dynamics point to increased use of outsourcing among the vast number of companies that currently manage these functions and processes in-house. • Increased Vehicle Cost and Complexity – New EPA-mandated clean- burning engine technologies have resulted in substantially higher initial costs, more maintenance complexity and higher operating costs. • Limited Credit Environment – While effective use of capital is always a concern for businesses, the tightening of capital availability has caused By outsourcing to Ryder and relying on our proven people, capabilities, and flexible infrastructure, companies can focus their time, capital and organizational resources on accelerating the success of their core companies to seriously question the value of investing in developing their business. own transportation infrastructure and buying equipment to support their core business. • Driver and Maintenance Technician Shortages – As a generation of baby- boomers continues to transition into retirement, finding safe and reliable professional drivers and qualified technicians presents a challenge for many companies, especially those which are not positioned to support the unique training and development required to keep these critical roles operating at the top of their game. 3 • Rapidly Changing Global Supply Chains – As the run up in fuel prices over the past few years has shown, labor rates are only one consider- ation and manufacturers who utilize “off-shoring” may need to be quickly transitioned to “near-shoring” or some other new construct in order to maintain competitiveness and achieve the lowest “total landed cost” of production. • Greater Management and Oversight Requirements – Increases in domestic and international regulatory requirements, safety and cargo security concerns, environmental concerns, risk and insurance, and many other responsibilities require substantial management time and monitoring of new developments to stay up-to-date and in compliance. PREPARATiOn MEETS OPPORTuniTY For nearly eight decades, Ryder has been developing and refining its solu- tions by focusing in on emerging customer needs, executing in real-world conditions, monitoring performance, and implementing timely process improvements. With the benefit of that heritage and solid foundation, over the past decade, Ryder has made significant strategic improvements to its business model to help reach the organization’s full potential. Through many business cycles and economic environments, Ryder has grown both organically and through more than three dozen acquisitions. The success of our improved business model comes from establishing tools and structures to manage our three, inter-related solutions groups in ways that better leverage our scale and improve our ability to perform in changing marketplace conditions. With an increasingly more efficient, largely contractual business model in place for the past decade, Ryder achieved a significant positive turnaround in financial performance. We have remained consistently profitable while showing a unique, counter-cyclical ability to deliver earnings leverage during the growth portion of a general business cycle, and deliver significant free cash flow, even in a very challenging economic downturn. 2010 AnnuAl Review 4 ACCELERATinG PROfiTABLE GROwTH in 2011 AnD BEYOnD With the belief that the worst of the external conditions are now behind us, Ryder is very well positioned to accelerate profitable growth now and in the future. • Maintained Size of Sales Force through Downturn – Our sales force is intact and ready to accelerate growth. Through the most challenging economic downturn, freight recession, and selling environment in memory, Ryder chose to maintain the size of its sales force, which is very well trained and attuned to customer needs and the applicability of Ryder’s solutions. • Investing in Technology, Innovation and Product Development – Ryder continues to differentiate its offerings with investments in unique technologies. For instance, Ryder continues to expand the number of vehicles equipped with web-enabled customer-facing FleetCare tech- nology for monitoring fleet metrics and performance data, and GPS/ computer integrated RydeSmartTM technology to lower operating costs and improve customer service. • Organized to Deliver Unmatched Value in Specific Market Segments – Ryder has segmented and targeted its focus on specific industries and solution applications where the Company is best positioned to leverage its proven ability in the areas of operational execution and real-world innovation. • Primed to Extend Our Lead in the Recovery – For many years, through every kind of business environment, Ryder has prepared for the opportunities that are now at our door. For the reasons outlined here and many more, Ryder stands ready to take advantage of opportunities to accelerate profitable growth in both the existing and emerging markets for outsourced transportation and supply chain management solutions. 2010 AnnuAl Review 5 2010 AnnuAl Review kEY PERfORMAnCE inDiCATORS “ The early-cycle indicators within our business contin- ued to strengthen in 2010. A relatively better economic environment and improved transportation demand ben- efitted our business, particularly in commercial rental and used vehicle sales. We also saw early signs of recovery in our lease business, with higher usage of existing lease vehicles by customers and stabilization of our lease fleet.” ART GARCiA Executive Vice President and Chief Financial Officer iMPROVED COMMERCiAL REnTAL PERfORMAnCE Recovery in Commercial Rental demand led to strong utilization and fleet growth Strong Utilization 2010 2009 Fleet Growth 12.31.10 12.31.09 76.1% 68.0% 29,700 vehicles 27,400 vehicles 6 BETTER uSED VEHiCLE SALES PERfORMAnCE improved pricing resulted from strong market demand Used Truck Pricing % Change 35% -3% -21% 2008 vs. 2007 2009 vs. 2008 2010 vs. 2009 Used Tractor Pricing % Change 17% 10% -18% 2008 vs. 2007 2009 vs. 2008 2010 vs. 2009 2010 AnnuAl Review 7 2010 AnnuAl Review STABiLiZinG Of fuLL SERViCE LEASE DEMAnD Higher usage of existing lease vehicles and stabilizing lease fleet size was driven by improving fundamentals Increase in miles driven per leased vehicle 3.1% -0.9% -6.4% 2008 vs. 2007 2009 vs. 2008 2010 vs. 2009 Lease fleet decline moderated in 2010 120,000 110,000 100,000 90,000 3.31.09 6.30.09 9.30.09 12.31.09 3.31.10 6.30.10 9.30.10 12.31.10 8 SEGMEnTS 2010 AnnuAl Review “ Ryder’s business segments fit together by providing outsourced fleet and supply chain management so- lutions that have been developed and continuously improved serving specialized customer needs in real- world conditions for nearly eighty years. Customers rely on Ryder to operate as an extension of their orga- nization to deliver against the highest performance standards, whether they’re outsourcing maintenance operations, fleets of vehicles, distribution and transpor- tation operations, or entire supply chains.” JOHn wiLLifORD President, Ryder Global Supply Chain Solutions Learn more Learn more Learn more 9 fLEET MAnAGEMEnT SOLuTiOnS Ryder’s Fleet Management Solutions (FMS) business segment provides full service leasing and rental of commercial trucks, tractors, and trailers; contract maintenance services; and a variety of fleet support services designed to help meet customers’ insurance, fuel, safety, and regulatory reporting needs. • full Service Lease , our largest product line, is a lease package offered as part of a long-term contract that includes vehicle sourcing, financing, and maintenance as well as a variety of fleet support services, including onboard telematics and web-based fleet management tools. • Commercial Rental is the FMS product line that provides customers with rental trucks on a short-term basis to meet peak or seasonal needs for supplemental capacity. • Contract Maintenance is a maintenance package that includes preventive maintenance, vehicle repairs, and 24/7 roadside assistance for customers with non-Ryder owned vehicles. (Contract-Related Maintenance provides maintenance services to contract customers who require additional maintenance not included in their contracts.) • used Vehicle Sales provides customers with access to a large selection of used trucks, tractors, and trailers, searchable online in English, French and Spanish, and through a network of more than 55 Used Vehicle Sales Centers. FMS is a market leader in its primary product lines, serving both large and small private fleets in the U.S., Canada, the United Kingdom and Germany. Differentiated by nearly eight decades of process refinements and a network of more than 800 maintenance facilities, FMS leverages its physical infra- structure, technology, processes and expertise to deliver efficiency, innovation and economies of scale to more than 14,000 contractual customers. 2010 AnnuAl Review 10 2010 PROGRESS In 2010, FMS delivered a very strong 23% increase in pre-tax earnings on operating revenue growth of 1%. Our commercial rental and used vehicle sales product lines allowed us to capitalize on recovering market demand. Throughout the year we continued to invest and position the FMS business to take advantage of favorable macro trends toward transportation outsourcing in the marketplace. FMS expanded its presence in high-potential markets through the opening of new service facilities and announced two strategic acquisitions to complement the eight previous FMS acquisitions the Company has made over the past decade. These acquisitions expand our FMS pres- ence in key areas of the western U.S. We expect these new acquisitions to add more than $35 million in annualized revenue and over 250 new contrac- tual customers, and be accretive to earnings in 2011. FMS also continued to open new facilities to serve leasing, maintenance, rental and used vehicle sales customers in fast-growing markets, including a new 30,000-square-foot facility in Hawaii and a new 26,000-square-foot service facility in Atlanta. In the Greater Toronto Area, FMS opened Canada’s largest retail center for used vehicles, showcasing 300-plus vehicles to suit a variety of customer needs. Similarly, Ryder enhanced the language offer- ings and search capabilities of its used vehicle website (www.usedtrucks. ryder.com). The site is now available in English, French, and Spanish to serve international used vehicle customers. The FMS team also continued to lead the way in environmental innova- tion, expanding its offering of service capabilities and green fleet options for customers. As more companies adopted new truck engines to meet the Environmental Protection Agency’s 2010 emissions standards, Ryder rolled out the ability to dispense specialized Diesel Exhaust Fluid (DEF) to all of its 550-plus U.S. service locations. DEF is required by most truck engine manu- facturers to run the new low-emission Selective Catalytic Reduction (SCR) technology. Going forward, FMS will soon supply its entire North American network of service facilities with DEF. 2010 AnnuAl Review 11 In 2010, the San Bernardino Associated Governments (SANBAG) Board selected Ryder as its fleet partner in a groundbreaking heavy-duty natural gas truck rental and leasing project in Southern California. For the first time, heavy-duty natural gas vehicles are being deployed into a large commercial truck rental and leasing operation. With $19.3 million in state and federal funding secured by SANBAG to implement the project, Ryder made one of the largest-ever orders of more than 200 heavy-duty natural gas pow- ered trucks. These ultra low-emission trucks will be deployed into Ryder’s Southern California operations network to become available for short-term rentals, long-term leases, or dedicated logistics services in early 2011. SuPPLY CHAin SOLuTiOnS Ryder’s Supply Chain Solutions (SCS) business segment provides com- prehensive logistics and supply chain management services, including: distribution management, transportation management, and professional services. • • Distribution Management includes order fulfillment, inbound material and outbound product support, warehouse and distribution center operations, reverse logistics, vendor managed inventory, and value- added services such as kitting, packaging and assembly. Transportation Management includes freight procurement and contract management, shipment planning and execution, freight brokerage, freight bill audit and payment, and origin/destination services. • Professional Services include strategic consulting, supply chain solutions engineering, network modeling and optimization, and total landed cost analysis, among other services. • integrated Offerings include combinations of these three solutions as well as Ryder’s Dedicated Contract Carriage product, which is managed as part of the SCS business segment, but reported separately as described below. 2010 AnnuAl Review 12 Ryder SCS has been voted the top third party logistics provider in the U.S. by readers of leading logistics industry publication Inbound Logistics for the past four consecutive years. Differentiated by its ability to deliver better operational execution and proactive solutions in real-world settings, SCS leverages its deep expertise by focusing on key vertical industry sectors including Automotive, High-Tech, Retail/Consumer Packaged Goods (CPG), and Industrial. SCS manages more than 29 million square feet of warehouse space globally and contracts with more than 1,500 outside providers of air, ground, rail, and ocean transportation services. Additionally, SCS concen- trates on developing a critical mass of interrelated operations and capabilities to serve the current and fast-emerging needs of more than 450 contractual customers in high potential geographies, including the United States, Canada, Mexico, Singapore, and China. 2010 PROGRESS In 2010, SCS generated a 32% increase in pre-tax earnings and a solid 5% increase in operating revenue. This performance reflected the rebound and stabilization of our substantial automotive-related business, as well as improved volumes and new business in other target industries, particularly in the high-tech sector. In addition to achieving strong financial results, SCS continued to diversify its deep automotive and high-tech industry experience into other targeted industries, such as retail and CPG, and expanded its presence in high-potential overseas markets. At year end, Ryder acquired Michigan-based Total Logistic Control (TLC), a highly regarded provider of comprehensive supply chain solutions to food, beverage, and CPG manufacturers with significant supply chains in the United States. The acquisition adds approximately $250 million in annual revenue to Ryder’s SCS business and will be accretive to Ryder’s earnings in 2011. Ryder gained 34 TLC facilities representing 10.6 million square feet of strategically placed dry and temperature-controlled warehousing. The TLC acquisition significantly accelerates our capabilities and growth prospects in the CPG industry sector, which has been a strategic target of growth for the SCS business. 2010 AnnuAl Review 13 Ryder also announced a joint venture partnership with Cargo Services Far East Limited, an Asia-based logistics solutions provider specializing in export consolidation services. Continuing the SCS strategic focus on expanding our services in high-potential international markets such as Asia, the joint venture has allowed Ryder to support retailers and other importers with source-to- store logistics capabilities between Asia and North America. In 2010, Ryder was awarded a patent from the U.S. Patent Office for our proprietary Logistics Release. The Logistics Release is a combination of systems and methods that improve supply chain integration and manage- ment. Through the Logistics Release and other integrated capabilities, SCS can provide customers with a unique “Control Tower” solution to improve exception management, shipment visibility, and shipment transit time. DEDiCATED COnTRACT CARRiAGE Ryder’s Dedicated Contract Carriage (DCC) business segment provides a turnkey transportation service that includes vehicles, drivers, maintenance, routing and scheduling, management and administrative support. This business segment is managed as part of the SCS organization and oper- ates primarily in the United States and the United Kingdom. DCC combines Ryder’s equipment know-how with drivers and additional management ser- vices to provide customers with a dedicated transportation solution designed to increase their overall competitiveness. Our DCC product is customized to meet the unique and specific demands of each customer. The solution is especially attractive to companies that require time-sensitive deliveries, as well as specialized equipment and material handling capabilities. Managed as part of the SCS organization, DCC operates primarily in North America. 2010 PROGRESS In 2010, DCC achieved a 3% increase in operating revenue, and remained profitable despite higher driver costs resulting from a general shortage of qualified drivers. Our acquisition of The Scully Companies, announced in the fourth quarter of 2010, includes a significant DCC component. We expect The Scully Companies acquisition to add approximately $65 million of DCC business, 17 substantial customers, and 32 locations throughout the western United States. 2010 AnnuAl Review 14 2010 AnnuAl Review OuR PEOPLE “ Our people hold the keys to unlocking Ryder’s out- standing long-term potential. We’re a company founded on personal relationships. Even in this rapid-paced information and technology–driven world, we want to ensure that Ryder will continue to be a place where a handshake is the cornerstone of success, and a promise to a customer is something that is meant to be kept.” GREG GREEnE Executive Vice President and Chief Administrative Officer When people think of Ryder, they often think of our vehicles and the physical locations of our service centers, logistics operations and large distribution facilities. While these are important components of our business, the reality is that Ryder’s business is differentiated based on the quality of our people, processes and technology. Through nearly eighty years of serving customers, one thing has remained constant – nothing is more important to the success of Ryder and its customers, than having a team of great people. When you walk into a Ryder location, you are likely to meet employees who have been with our company for 20, 30, 40 or more years and who still have a passion for learning more and serving customers better. Ryder employees often work in customers’ locations, wear customers’ uniforms and even serve Ryder’s Diversity & Inclusion Council, led by Chairman and Chief Executive Officer, Greg as our customers’ face to their customers. That passion and the unique bond Swienton, advises the Company in areas we have with our customers are both distinct parts of Ryder’s culture, that we including: using diversity to drive innovation, as well as recruiting and retention, education and training. want to keep and grow. OPTiMiZinG EMPLOYEE POTEnTiAL Building on our distinct “people” advantage requires our ongoing commitment to provide our team of nearly 26,000 employees with high quality equipment, training and tools. In 2010, we continued to make investments in training and development, as well as new processes and technology to unlock our em- ployees’ potential, productivity and efficiency. We have placed a high priority on reducing manual processes and improving operating efficiency, so our people in all positions can maximize time spent using their true expertise. 15 We are driving further efficiencies in customer support functions with tech- nologies to increase billing and reporting accuracy, and improve integration of customer support functions. These are some examples of the investments in technology that will improve both the quality of our team’s workplace experi- ence and provide increased service quality to our customers. DRiVinG BuSinESS RESuLTS THROuGH DiVERSiTY & inCLuSiOn The concepts of Diversity & Inclusion have been around a long time at Ryder. We embrace greater diversity and inclusion not only because it makes good business sense, but also because it enriches our life experiences and quality of life as people. In a very real sense, Diversity & Inclusion plays a key role in the quality of our solutions, our ability to remain competitive, and our success in achieving our growth objectives. To reinforce the business benefits of cultivating Diversity & Inclusion, we have established an internal Diversity & Inclusion Council, led by Ryder Chairman and Chief Executive Officer, Greg Swienton, which includes representatives from throughout Ryder’s functional areas and geographies. Together, they advise the Company in areas including: using diversity to drive innovation, as well as recruiting and retention, educa- tion and training. 2010 AnnuAl Review 16 2010 AnnuAl Review RESPOnSiBiLiTY “ Ryder is committed to being the kind of organization that you can be very proud to be associated with, whether you are an employee, customer, business partner, investor or fellow community member. That means setting and performing to high ethical standards, getting the right results the right way, and always re- maining conscious of our leadership role and responsi- bility to the communities and environments in which we serve customers.” BOB fATOViC Executive Vice President, Chief Legal Officer RYDER CARES At Ryder, corporate responsibility, industry leadership and community in- volvement are ideals that are put into practice every day by the way that we approach our business and deliver solutions for our customers. Our deep expertise, multi-billion dollar investments in equipment and technology, and industry-leading processes and procedures have been developed and refined for nearly 80 years. This commitment to the highest standards of safety, efficiency, environmental awareness and ethical business practices, enables Ryder to help customers optimize performance while protecting them against potentially harmful impacts and real-world costs associated with transportation and logistics operations. EnViROnMEnT “Ryder has provided critical financial support to the American Red Cross through our Annual Disaster Giving Program. In fact, the company and its employees are always there for us when we need them—providing volunteers, logistical assistance and vehicles to help disaster victims. We greatly appreciate Ryder’s substantial record of In 2010, we continued to work closely with original equipment manufacturers support for the Red Cross.” to test and evaluate the performance and reliability of various engines and technologies designed to reduce emissions for use in our fleet and those that we lease and operate for customers. We do extensive research and testing to ensure that our customers have access to the most energy-efficient vehicles, including our specially configured RydeGreensm tractors, trailers, and hybrids as well as Compressed Natural Gas trucks, designed to reduce fuel con- sumption and greenhouse gas emissions. In recognition of our efforts and GAiL MCGOVERn American Red Cross President and CEO 17 investments, Ryder was once again named an Inbound Logistics Magazine Green Supply Chain Partner, one of 25 companies that have demonstrated a deep commitment to supply chain sustainability. Beyond our fleet improve- ments, we continue to expand the tracking of utility use and greenhouse gas emissions to all Ryder operated facilities in the U.S. and Canada. Ryder also continued its voluntary participation in the Carbon Disclosure Project. SAfETY & SECuRiTY Because safety is a core value at Ryder, we continued to deploy innovative technologies to improve driver safety, including onboard driver feedback and lane departure warning systems, and forward-sensing technologies aimed at reducing driver error and collisions. In the area of security Ryder continued to enhance security programs and technologies supporting our vehicle fleets. All of Ryder’s logistics operations in the U.S., Canada and Mexico are certi- fied under the stringent standards of the Customs-Trade Partnership Against Terrorism (C-TPAT) Program. We were also once again honored with a top three ranking for our industry in Security Magazine’s annual Security 500 list for 2010. CAuSES & COMMuniTiES Ryder has demonstrated a long-standing commitment to supporting the com- munities in which our customers operate and where our employees live and work. The Company continued to make well-targeted charitable contributions to non-profit organizations through the Ryder Charitable Foundation. Since the early 1990s, Ryder has been a philanthropic partner of the American Red Cross, supplying in-kind donations of trucks and providing financial support. More recently, The Ryder Charitable Foundation formalized a nationwide partnership with the Red Cross, with a $1 million pledge to support national and local disaster preparedness and response efforts, as a member of the American Red Cross Annual Disaster Giving Program. Our commitment goes beyond the financial pledge to also include providing vehicles, logistics con- sulting, volunteers and other resources. We are extremely proud of the selfless contributions of our employees. Whether volunteering their time to help at-risk youth in their local community, committing their personal resources to assist with disaster relief, serving their country in the military, or giving back in many other meaningful ways – our employees truly embody the spirit of “Ryder Cares.” 2010 AnnuAl Review 18 2010 AnnuAl Review finAnCiALS “ The benefits of the significant business model improve- ments we’ve made since the early 2000s have become especially clear over the past few years. Despite poor external economic conditions and a deep, multi-year freight recession, Ryder delivered record free cash flow in 2009, and followed that with revenue growth and a 31% increase in comparable earnings per share in 2010.” ART GARCiA Executive Vice President and Chief Financial Officer 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 10K REVENUE $6,136 $6,363 $5,999 $4,887 $5,136 $244 $247 $248 $252 $267 $258 $95 $90 $117 $125 EARNINGS FROM CONTINUING OPERATIONS Dotted bars represent corporate earnings from continuing operations (1) 19 $3.94 $3.99 $4.13 $4.19 $4.68 $4.51 $1.70 $1.62 $2.22 $2.37 EARNINGS PER DILUTED COMMON SHARE FROM CONTINUING OPERATIONS Dotted bars represent corporate earnings per share from continuing operations (1) Dollars in millions OPERATING OVERVIEW Revenue Operating revenue(1) 2010 2009 Change $5,136 $4,887 $4,158 $4,063 5% 2% Earnings from continuing operations before income taxes $186 $144 30% Comparable earnings from continuing operations before income taxes(1) Earnings from continuing operations Comparable earnings from continuing operations(1) Net earnings Dollars in millions $189 $157 21% $125 $90 38% $117 $118 $95 $62 24% 91% FINANCIAL DATA 1 Represents a non-GAAP financial measure – for details of this measure and a reconciliation to the GAAP measure, please refer to “Overview”, “Financial Resources and Liquidity” and “Non-GAAP Financial Measures” discussion presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in Form 10-K which Total assets can be accessed by the link above. 2 Includes our global fleet of owned and leased vehicles, as well as vehicles under contract maintenance agreements. Total debt $2,498 $6,260 $2,747 $6,652 10% 6% Shareholders equity $1,404 $1,427 -2% Return on average shareholders equity 8.40% 4.40% 4.0 pts Adjusted return on capital(1) 4.80% 4.10% 0.7 pts Debt to equity Free cash flow(1) 196% 175% 21 pts $258 $614 -58% Capital expenditures paid $1,070 $652 64% PER COMMON SHARE DATA Earnings from continuing operations - Diluted Comparable earnings from continuing operations - Diluted(1) $2.37 $1.62 46% $2.22 $1.70 31% Net earnings - Diluted $2.25 $1.11 103% Book value Cash dividends $27.44 $26.71 $1.04 $0.96 3% 8% OTHER DATA Common shareholders of record as of January 9,192 9,482 Common shares outstanding 51,174,757 53,419,721 Number of vehicles managed(2) 182,100 186,800 -3% -4% -3% Number of employees 25,900 22,900 13% 1 2 Represents a non-GAAP financial measure – for details of this measure and a reconciliation to the GAAP measure, please refer to “Overview”, “Financial Resources and Liquidity” and “Non-GAAP Financial Measures” discussion presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Annual Report. Includes our global fleet of owned and leased vehicles, as well as vehicles under contract maintenance agreements. operations before income taxes $186 $144 30% Dollars in millions OPERATING OVERVIEW Revenue Operating revenue(1) Earnings from continuing Comparable earnings from continuing operations before income taxes(1) Earnings from continuing operations Comparable earnings from continuing operations(1) 2010 2009 Change $5,136 $4,887 $4,158 $4,063 5% 2% $189 $157 21% $125 $90 38% $117 $95 24% Net earnings $118 Dollars in millions FINANCIAL DATA Total assets Total debt Shareholders equity Return on average shareholders equity Dollars in millions OPERATING OVERVIEW Revenue Operating revenue(1) Earnings from continuing operations before income taxes $6,652 Comparable earnings from continuing operations before income taxes(1) $2,747 Earnings from continuing operations $1,404 Comparable earnings from continuing operations(1) Net earnings 8.40% $62 2009 91% Change 2010 $5,136 $4,887 $4,158 $4,063 5% 2% $186 $6,260 $144 $2,498 $189 $157 $1,427 $125 $90 $117 $95 4.40% $118 $62 30% 6% 10% 21% -2% 38% 24% 4.0 pts 91% Adjusted return on capital(1) Dollars in millions 4.80% 4.10% 0.7 pts Debt to equity Free cash flow(1) FINANCIAL DATA Total assets Total debt 196% Shareholders equity $258 Capital expenditures paid Return on average shareholders equity $1,070 $6,652 175% $6,260 $2,747 $2,498 $614 $1,404 $1,427 $652 8.40% 4.40% 21 pts 6% 10% -58% -2% 64% 4.0 pts Adjusted return on capital(1) 4.80% 4.10% 0.7 pts Debt to equity 196% 175% 21 pts PER COMMON SHARE DATA Free cash flow(1) $258 $614 -58% Capital expenditures paid $1,070 $652 64% Earnings from continuing operations - Diluted PER COMMON SHARE DATA $2.37 $1.62 46% Comparable earnings from continuing operations - Diluted(1) Net earnings - Diluted Book value Cash dividends OTHER DATA Common shareholders of record as of January Earnings from continuing operations - Diluted $2.22 Comparable earnings from continuing operations - Diluted(1) $2.25 Net earnings - Diluted $2.37 $1.62 $1.70 $2.22 $1.70 $2.25 $1.11 $1.11 Book value Cash dividends $27.44 $27.44 $26.71 $26.71 $1.04 $0.96 OTHER DATA $1.04 $0.96 Common shareholders of record as of January 9,192 9,482 Common shares outstanding 51,174,757 53,419,721 Number of vehicles managed(2) 182,100 186,800 Number of employees 25,900 22,900 9,192 9,482 46% 31% 31% 103% 103% 3% 3% 8% 8% -3% -4% -3% 13% -3% 06 07 08 09 10 06 07 08 09 10 $6,136 $6,363 $5,999 $4,887 $5,136 $244 $247 $248 $252 $267 $258 2010 AnnuAl Review REVENUE $6,136 $6,363 $5,999 $95 $90 $4,887 $5,136 $117 $125 REVENUE EARNINGS FROM CONTINUING OPERATIONS $244 $247 Dotted bars represent corporate earnings $248 from continuing operations (1) $252 $267 $258 $95 $90 $117 $125 06 EARNINGS FROM CONTINUING OPERATIONS 07 Dotted bars represent corporate earnings from continuing operations (1) 08 09 10 $1.70 $1.62 $2.22 $2.37 $3.94 $3.99 $1.70 $1.62 $4.13 $4.19 $4.68 $4.51 $2.22 $2.37 $3.94 $3.99 $4.13 $4.19 $4.68 $4.51 EARNINGS PER DILUTED COMMON SHARE FROM CONTINUING OPERATIONS EARNINGS PER DILUTED COMMON SHARE FROM CONTINUING OPERATIONS Dotted bars represent corporate earnings per share from continuing operations (1) Dotted bars represent corporate earnings per share from continuing operations (1) 06 07 08 09 10 06 07 08 09 10 06 07 08 09 10 Common shares outstanding 51,174,757 53,419,721 -4% Number of vehicles managed(2) Number of employees 1 2 Represents a non-GAAP financial measure – for details of this measure and a reconciliation to the GAAP measure, please refer to “Overview”, “Financial Resources and Liquidity” and “Non-GAAP Financial Measures” discussion presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Annual Report. 182,100 186,800 -3% Includes our global fleet of owned and leased vehicles, as well as vehicles under contract maintenance agreements. 25,900 22,900 13% Represents a non-GAAP financial measure – for details of this measure and a reconciliation to the GAAP measure, please refer to “Overview”, “Financial Resources and Liquidity” and “Non-GAAP Financial Measures” discussion presented in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Annual Report. 20 Includes our global fleet of owned and leased vehicles, as well as vehicles under contract maintenance agreements. 1 2 2010 AnnuAl Review SHAREHOLDER infORMATiOn EXECuTiVE LEADERSHiP Gregory T. Swienton Chairman and Chief Executive Officer Art A. Garcia Executive Vice President and Chief Financial Officer Gregory f. Greene Executive Vice President and Chief Administrative Officer keyvan Bohlooli Senior Vice President and Chief Information Officer Robert E. Sanchez Michael J. Brannigan President Global Fleet Management Solutions Senior Vice President Corporate Development and Strategy John H. williford President Global Supply Chain Solutions Robert D. fatovic Executive Vice President Chief Legal Officer and Corporate Secretary BOARD Of DiRECTORS Stephen f. Dean Senior Vice President Sales and Marketing Supply Chain Solutions John J. Diez Senior Vice President Asset Management Fleet Management Solutions John J. Gleason Senior Vice President Sales and Marketing Fleet Management Solutions North America Thomas L. Jones Senior Vice President and General Manager Supply Chain Solutions w. Daniel Susik Senior Vice President, Finance, and Treasurer Cristina A. Gallo-Aquino Vice President and Controller Gregory T. Swienton L. Patrick Hassey 2,3 Abbie J. Smith 1,4 Chairman and Chief Executive Officer of Ryder System, Inc. Chairman and Chief Executive Officer of Allegheny Technologies, Inc. James S. Beard 2,4 Lynn M. Martin 2,3 Retired Vice President of Caterpillar Inc. and former President of Caterpillar Financial Services Corporation John M. Berra 2,4 Retired Executive Vice President of Emerson Electric Company and former Chairman of Emerson Process Management David i. fuente 2,4 Retired Chairman and Chief Executive Officer of Office Depot, Inc. Former U.S. Secretary of Labor Luis P. nieto, Jr. 1,3 Retired President of the Consumer Foods Group for ConAgra Foods, Inc. Eugene A. Renna 1,4 Retired Executive Vice President of Exxon Mobil Corporation; and former President and Chief Operating Officer of Mobil Corporation 1-Audit Committee 2-Compensation Committee 3-Corporate Governance and Nominating Committee Professor of Accounting at the University of Chicago Booth School of Business E. follin Smith 1,3,5 Former Executive Vice President, Chief Financial Officer and Chief Administrative Officer of Constellation Energy Group, Inc. Hansel E. Tookes, ii 1,3 Retired President of Raytheon International and former Chairman and Chief Executive Officer of Raytheon Aircraft Company 4-Finance Committee 5-Lead Independent Director 21 2010 AnnuAl Review GLOBAL OPERATinG EnTiTiES AnnuAL MEETinG DiViDEnD REinVESTMEnT PLAn united States Ryder Transportation Services Ryder Integrated Logistics, Inc. Ryder Energy Distribution Corporation Ryder Fleet Products, Inc. Ryder Fuel Services, LLC Ryder Puerto Rico, Inc. Canada Ryder Truck Rental Canada Ltd. Ryder CRSA Logistics Ryder Container Terminals China Ryder Logistics (Shanghai) Co., Ltd. Hong kong Ryder CRSA Logistics (HK) Limited Mexico Ryder de Mexico, S. de R.L. de C.V. Singapore Ryder Ascent Logistics Pte Ltd. united kingdom Ryder Limited Germany Ryder Deutschland GmbH GLOBAL HEADquARTERS Ryder System, Inc. 11690 N.W. 105th Street Miami, FL 33178 (305) 500-3726 nEw YORk STOCk EXCHAnGE R The annual meeting of shareholders of Ryder System, Inc. will be held at 10:00 a.m., Friday, May 6, 2011, at the Company’s Headquarters in Miami, Florida. SHAREHOLDER infORMATiOn For shareholder information please contact: Investor Relations Ryder System, Inc. 11690 N.W. 105th Street Miami, FL 33178 (305) 500-4053 e-mail:RyderForInvestors@ryder.com Shareholders may automatically reinvest their dividends and cash in additional shares of Ryder System, Inc. stock by enrolling in the Company’s Dividend Reinvestment Plan. Information about the Dividend Reinvestment Plan may be obtained by contacting: Wells Fargo Bank, N.A. Shareowner Services Post Office Box 64854 St. Paul, MN 55164-0854 (866) 927-3884 (651) 450-4085 (fax) www.wellsfargo.com/shareownerservices Outside the U.S. (651) 450-4064 inDEPEnDEnT REGiSTERED CERTifiED PuBLiC ACCOunTinG fiRM PricewaterhouseCoopers LLP For Dividend Reinvestment Plan Optional Cash Investments: Wells Fargo Shareowner Services Post Office Box 64856 St. Paul, MN 55164-0856 TRAnSfER AGEnT AnD REGiSTRAR Wells Fargo Bank, N.A. Shareowner Services Post Office Box 64854 St. Paul, MN 55164-0854 (866) 927-3884 (651) 450-4085 (fax) www.wellsfargo.com/shareownerservices Outside the U.S. (651) 450-4064 22